Nunavut’s Mining Industry in the National Context Elizabeth Kingston Nunavut Trade Show October 2014

2 Key Messages Exploration & mining are the foundation of Nunavut’s economy Nunavut has been a great story of success Exploration spending has suffered a significant decline Investment needed to grow opportunities in our greatest economic strength (mining) and our greatest territorial strength (people)

3 The North: how do we compare? 1/3 of Canada Less than 75k residents Arctic conditions & climate Virtually undeveloped with little infrastructure High costs Least mapped region of Canada Most heavily subsidized region of Canada Economic options are few & community opportunities are needed Non-renewable resources are the economic advantage Area of NWT + Nunavut = Norway, Sweden, Finland, Denmark, France, Germany, Poland, Spain, Portugal, Italy combined.

4 Mining is the largest private sector contributor in Nunavut One mine in Nunavut already makes largest private sector economic contribution And does not include exploration Mining also contributes to other sectors, e.g. real estate, transportation and construction

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7 Mining production is significant Nunavut – Meadowbank gold production increases Natural Resources Canada – March 2014

8 Falling Nunavut Exploration is a Cause for Concern Notes: Expenditures reported include on-mine-site and off-mine-site activities, field work, overhead costs, engineering, economic and pre- or production feasibility studies, environment, and land access costs figures are final estimates; 2014 figures are revised spending intentions as of March NRCan – March 2014

9 Nunavut Exploration Share (Uses March 2013 numbers) Nunavut is witnessing a decline against other Canadian jurisdictions. NRCan – March 2013 Note: “NU only” statistics begin after Nunavut was created in 1998

10 A level playing field for Nunavut miners? Remote sites require airstrips and camps to support mobile workforce. Airstrip and camp at Meadowbank gold mine

11 Our industry creates significant benefits Mining is the largest employer of Aboriginal people Mining in Canada is projected to need 120,000 workers by 2024 * Nunavut Mining Jobs needed at peak (overlap) – over 8000 Total person years employment – nearly 100,000 * Mining Industry Human Resource Council, 2014

12 Growing Inuit Businesses Opportunities & Benefits Selection of Inuit companies supporting the mining & exploration industry in Nunavut Peter’s Expediting Jago Services Qillaq Innovations Toromont Arctic Kitnuna Kivalliq Expediting & Storage Oomilik Enterprises Akhaliak Consulting Kitikmeot Blasting Services Kitikmeot Caterers Ltd. Baker Lake Contracting & Supply Forest North Aviation & Logistics Eskimo Point Lumber & Supply M & T Enterprises Kiluk Ltd. Kusugak Consulting Qikiqtani Industry Ltd. Nuna Group of Companies Kitikmeot Cementation Mining & Development Medic North Nunavut

13 Training & Education Builds Futures Mining Matters / Actua Kivalliq Mine Training Society Arviat Diamond Driller/Welding Nunavut Arctic College / Trades School Agnico Eagle / Baffinland Initiatives Government of Nunavut “Sivumut Abluqta” Government of Canada –Northern ABE Program –Canada Job Fund

14 In 2013, 32 active projects 5 advanced 12 Gold 7 Base Metals 4 Uranium 3 Diamonds 5 Iron 1 Coal Several properties multi-commodity

15 Conclusion Mining is the North’s economic strength We have very high mineral potential We have world class mines and world class opportunities Actions are underway to support investment certainty and strengthen our number one industry Providing infrastructure to support mining will help communities Add your voice and influence